Cement clearances to institutional or industrial consumers qualify for concessional duty where retail sale price declaration is not required.

Supplies of cement in 50 kg bags to builders, infrastructure companies and government infrastructure departments can qualify as clearances to institutional or industrial consumers where the packaged commodity rules do not require declaration of retail sale price. In that situation, the goods fall within the concessional scope of the duty notifications applicable to goods cleared other than in packaged form, and the denial of exemption is unsustainable. The clearances were therefore eligible for notification benefit, the impugned order was set aside, and the appeal was allowed with consequential relief in accordance with law.

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Issues: Whether cement cleared in 50 kg bags to builders and construction companies qualifies as clearance to institutional or industrial consumers so as to avail the benefit of Notification No. 04/2006-CE dated 01/03/2006 and Notification No. 12/2012-CE dated 17/03/2012.

Analysis: The notifications provided concessional duty for goods cleared other than in packaged form, and the proviso linked the treatment of goods to whether retail sale price was required to be declared under the applicable packaged commodity regime. The relevant rules excluded packages meant for industrial use or institutional consumers from the provisions applicable to retail sale packages. On the facts, the goods were supplied to builders, infrastructure companies and government infrastructure departments, which brought the clearances within the concept of institutional or industrial consumers.

Conclusion: The clearances were eligible for the notification benefit, and the denial of exemption was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief in accordance with law.

Ratio Decidendi: Supplies of cement to builders and construction companies can qualify as clearances to institutional or industrial consumers for purposes of the concessional duty notifications where the packaged commodity rules do not require declaration of retail sale price.

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